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The Securities and Exchange Commission (SEC) has filed an emergency action against Creative Capital Consortium, LLC, Creative Capital Concepts, LLC, and its principal, George L. Theodule, to halt an alleged Ponzi scheme and affinity fraud.  According to the complaint, Theodule raised at least $23.4 million from thousands of investors in the Haitian-American community through a network of purported investment clubs created for the sole purpose of directing funds to Theodule and Creative Capital. The complaint alleges that beginning in at least November 2007, Theodule solicited investors by guaranteeing a 100% return within 90 days of their initial investment.  The defendant went on to say that the investments would fund new building ventures, which would benefit the Haitian community in the United States, Haiti, and others in Sierra Leone.  In reality, Theodule lost at least $18 million trading stocks and options, while merely repaying earlier investors with monies collected from new investors in classic Ponzi fashion.   

The complaint also alleges that Theodule commingled investor funds with his personal funds, misappropriating at least $3.8 million for himself.   

Theodule had a target audience and he developed a scheme that would appeal to them.  He was a student of his audience and he knew what would entice them.  Before long, he had over $23 million of investor funds. 

In this case, and so many others, the investor is being duped without seeing the red flags.  Is your money tied up in a Ponzi scheme, or is your broker tied to scams of the past?  There is only one way to tell.  Ask a former SEC Branch Chief for a report and safety rating on your broker and his firm.  Don’t be the next baby boomer or senior citizen waiting for a promised return that you’ll never see; protect your nest egg instead.